Just about everyone over the age of 18 has bought & financed a car at some point. Typically most people research which car they want but forget to research the financing available. By doing so you rely solely on the dealership for your finance options. However there is another option that most people are unaware of or simply forget about – The Credit Union. Before you head out to make your next big purchase make sure to stop by your local credit union and discuss financing options before you go. You can find out available rates & terms or even get pre-approved so that you can negotiate with power. So whats the difference between Credit Unions and Banks? Check out the info below you may be surprised.
Credit Unions vs. Banks
Credit unions are not-for-profit cooperatives that exist solely to provide financial services to their members, and anyone can find one that he or she is eligible to join. Unlike banks, it’s the members, not corporate shareholders, who own the credit unions. That means all the profit that credit unions bring in goes back to members in the form of dividends, rebates and lowered interest rates; for every $100 deposited at a credit union, on average $67 is directly redeployed to individual borrowers within the membership.
Services provided by credit unions mirror those of big banks, but that’s where the similarities end. On average, credit unions offer lower interest rates on loans and higher interest returns on investments, as well as lower fees for checking accounts, ATM surcharges, overdrafts and stopped payments.
Other benefits of credit unions include:
· Convenience: There are 5,000 shared branches in the credit union network and 100,000 ATMs in the shared ATM network. In addition, 1,182 credit unions participate in shared branching networks.
· Membership Impact: In the last year, credit unions distributed more than $5.3 billion in member dividends and refunds on loan interest payments. Additionally, 2.4 million credit union members have obtained vital credit since 2007 when for-profit lenders pulled back during the same time period. Credit unions enabled a total of 43,800 members to refinance “bad” debt within the last year. And in that same span, credit unions helped more than 37,000 families attain higher education access with fair value private student loan financing.
· Community Impact: More than 3.7 million Americans have joined a credit union since the end of September 2011. Credit unions helped 786,000 members by extending more than $134 billion of mortgage financing credit in the last year. Some 1,224 credit unions offer financial literacy classes to help members make more informed financial decisions. And in the last year, credit unions provided more than $630 million within local communities for building infrastructure to support new commercial, residential, industrial and farm-related developments.
Do You Know Where Your Money Really Goes?
When you use a big bank, do you know where your money really goes?
Up to 97% of the money you deposit can leave the community and all of the profits stay with the shareholders, while you get stuck with the fees.
But when you use a credit union, the money you deposit stays in the community. Your dollar can become someone’s college degree or a loan for a family’s first home. These local reinvestments are the seeds that keep communities growing.
Let’s invest in something that’s even bigger than the banks. Each other. Make your money matter. Join a credit union today.
Visit MakeYourMoneyMatter.org to learn more.
Make Your Money Matter.org is a client of The Brand Connection
After I moved into my new home in Plainfield, Illinois, I immediately started budgeting to buy a new car. I saw Oak Trust Credit Union while driving down the street and I contacted them. They have some crazy good rates on car loans…turns out I did not have to budget for too long…lol